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KENNEDYS HELP SCHOOL FOR RETARDED

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The St. Coletta School, an educational, training and retirement center for the mentally retarded, is getting a million dollars from the Kennedy family, and school officials say they know exactly what they will do with the money.

First, they plan to renovate and enlarge the school's home for the elderly, one of the few such homes in the United States for older retarded people. Among the 75 residents is Rosemary Kennedy, 65 years old, the eldest daughter of Rose Kennedy. It is in honor of Mrs. Kennedy's 93d birthday that the money is being donated.

The money will also go toward expanding the school's special activities for older people. Sister Elaine Weber, the administrator of the school operated by the Sisters of St. Francis, said St. Coletta's, perhaps by strengthening its affiliation with the University of Wisconsin, intended to become a national center for students of aging and mental retardation. Situated in Rural Area

The school is a village on 700 acres in the rolling hills of southeastern Wisconsin about 50 miles west of Milwaukee. It has 375 residents, ranging from 6 years old to 91; it has a staff of 225.

One of the residents of the school's Alverno House for the elderly retarded is Wilma Hartwell, who has spent 60 of her 67 years at St. Coletta's. She became a school celebrity when she attended Mrs. Kennedy's birthday party at Hyannis Port, Mass., July 24.

''I gave her two embroidered pillow cases and said happy birthday from all your friends at Alverno,'' she recalled. ''Then I said thank you for your gift. I like to visit and talk to people. It makes me happy inside.''

It was at that party that Edward M. Kennedy announced the Kennedy Foundation would give $1 million to St. Coletta's. The Democratic Senator from Massachusetts said the money would enable the school to develop a pioneering concept of care for aging mentally retarded people.

''Advances in medical science have had a profound impact on the life span of mentally retarded persons,'' Mr. Kennedy said. ''Little has been done, however, to make these additional years a time of hope and joy for elderly retarded individuals.'' Largest Donation to School

The contribution will be the largest single donation the school has received, Sister Elaine said. She said the school's annual operating budget was nearly $5 million, with about half of that from tuition, 25 percent from state and Federal sources and about 25 percent from foundations and private contributions.

St. Coletta's, founded in 1904, is the oldest of five residential schools for the mentally retarded operated by the Sisters of St. Francis.

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The school has a dairy, beef and poultry farms, raises all its animal feed, grows all its vegetables, has cherry and apple orchards, a bakery, upholstery shop, laundry and a small store.

In addition to the home for the elderly, there is also a school for mentally retarded youngsters, a vocational training program for young adults and a resident worker program for adults.

Rosemary Kennedy lives next to the large two-story Alverno House in a separate cream-colored brick house with three nuns. ''The ranch,'' as her Alverno friends call it, was built especially for her 35 years ago when the Kennedy family chose St. Coletta's as her permanent residence. Aid Needed for Older People

Sister Elaine said that while there is care, education and training readily available for retarded people under 40, little exists for older people.

''Twenty years ago it was unusual to have an individual with Down's syndrome live over 40 years,'' she said in an interview. ''But with good medical care and a loving, stimulating environment as we have at St. Coletta's, such an individual can have a normal life span.''

Some of the programs to be developed or expanded at St. Coletta's are photography, cooking, plant care, drama, music, woodworking and volunteer work in the community, she said.

''Our long-term goal is to prove that these people can develop more self-confidence and self-esteem, be happier and live longer,'' Sister Elaine said.

In Alverno House, several residents talked about the $1 million gift.

''I tell you, I like it,'' said Vincent Lippart, 41. ''I'd like to have only two people to a room,'' he added, alluding to plans to add rooms.

Elsie Bucher, 64, who has been at St. Coletta's 60 years, said, ''We change as we get older. The school needs to change, too.''

A version of this article appears in print on August 13, 1983, on Page 1001007 of the National edition with the headline: KENNEDYS HELP SCHOOL FOR RETARDED. Order Reprints|Today's Paper|Subscribe